Yesterday we ran an article lauding Brevan Howard’s comparatively large number of risk managers.
However, it has been brought to our attention that having that many risk managers may have a negative externality: traders allegedly don’t like working there for long.
“The turnover of traders at Brevan Howard is high,” claims a senior prop trader at one bank in London. “Their risk managers are very strict with you the moment you start making losses and not everyone likes that.”
We were unable to establish whether this is indeed the case as Brevan Howard declined to comment.
An article published on Bloomberg several months ago, reinforces the impression of high trader turnover. However, this appears to be Brevan Howard’s intention.
It says an 8% loss triggers a change in the trader’s mandate and a further cut in capital and that a 12% loss leads to a shutdown in trading that may result in a resignation or dismissal.
Bloomberg also quotes an anonymous Brevan Howard employee, who says you’ve done well if you last two years at the firm.